South African crypto firms warn that unclear regulation harms the entire crypto industry and they are threatening to move abroad if lawmakers don’t provide better guidelines so let’s read more in our latest crypto news today.

South African crypto firms are threatening to move abroad because of the opaque regulation in the region and speaking to Bloomberg, Sean Sanders who is the CEO of a local crypto investment platform Revix, said he plans to relocate the head office to the UK because the South African government is slow in clarifying regulatory guidelines for the industry:

 “That leads to businesses looking internationally. In an unregulated environment, a customer arrives at our platform with skepticism, and rightfully so.  South Africa seems to go in the opposite direction of some of the more developed market pioneers and innovators in this space. For regulators to apply hundred-year-old securities regulations to the novel cryptocurrency asset class seems lazy.”

South African crypto companies claim that the financial institutions are unwilling to provide banking services to them with Marius Reitz who is the African general manager of global exchange Luno and warned that the apparent banking embargo will stifle local adoption:

 “This makes it very difficult for customers to buy Bitcoin with their local fiat currency.”

South African adoption was hampered because of scammers leveraging crypto to lure in victims but the financial conduct authority or FSCA reported the number of crypto scams is increasing amid the bull market. the FSCA warned investors:

 “Do not be pressured to go with the flow and do not be afraid of being left out of the next big thing.’”

Back in 2020, the reports showed that an alleged South African Ponzi Scheme Mirror Trading International was placed into provisional liquidation by regulators after receiving more than 23,000 BTC from investors. The investigation conducted by the FSCA, revealed that the company didn’t keep accounting records or maintain a user database with the investors being unable to withdraw funds and the company’s CEO Johann Steynberg fleeing to Brazil.

As recently reported, The South African authorities are seeking more control over crypto trading after the collapse of the biggest Ponzi Scheme in the country. Alleged BTC trading company Mirror Trading International was placed on provisional liquidation as investors tried and failed to withdraw their funds. the company claimed to have more than 260,000 memberships across the world and said that it handles about 23,000 BTC which is a sum worth $716 million.

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Source: https://www.dcforecasts.com/regulation/south-african-crypto-firms-warn-unclear-regulations-harm-the-industry/